Cooling measures 2023 update: The Singapore government announced late Wednesday night (26 April) that the Additional Buyer’s Stamp Duty (ABSD) rates will be increased, effective from 27 April.
Among the changes, the increase is the steepest for foreigners, doubling from 30% (from the December 2021 cooling measure) to 60%.
Meanwhile, Singaporeans buying their second residential property will be subject to an ABSD rate of 20% — an increase from 17%. The ABSD rate for Permanent Residents (PR) buying their second residential property will also be higher at 30%, up from 25%.
Here’s a table summarising the increases in ABSD
| ABSD rate from 16 Dec 2021 to 26 Apr 2023 | ABSD rate from 27 Apr 2023 | Increased by | ||
| Singapore citizens | First residential property | 0% | 0% | – |
| Second residential property | 17% | 20% | 3% | |
| Third and subsequent residential property | 25% | 30% | 5% | |
| Permanent Residents (PR) | First residential property | 5% | 5% | – |
| Second residential property | 25% | 30% | 5% | |
| Third and subsequent residential property | 30% | 35% | 5% | |
| Foreigners^ | Any residential property | 30% | 60% | 30% |
| Entities | Any residential property | 35% | 65% | 30% |
| Trustees | Any residential property | 35%* | 65% | 30% |
| Housing developers | Any residential property | 35% (remittable) + 5% (non-remittable) | 35% (remittable) + 5% (non-remittable) | – |
^Excluding Nationals and Permanent Residents of Iceland, Liechtenstein, Norway and Switzerland, and Nationals of the United States of America, who will be subject to the same ABSD rate as Singaporeans.
*The ABSD rate for trustees was from 9 May 2022 to 26 April 2023.
And here’s an infographic on how to calculate your ABSD
Alternatively, use 99.co’s stamp duty calculator to calculate how much ABSD to pay!
At the same time, the Additional Conveyance Duties for Buyers (ACDB) for qualifying acquisitions of equity interest in property holding entities (PHEs) has been increased from up to 46% to up to 71%. A PHE refers to an entity with at least 50% of its total tangible assets comprising prescribed immovable properties in Singapore.
Cooling measures come after a 3.2% price increase in Q1 2023
The cooling measures, the third round since December 2021, come after a 3.2% increase in private property home prices in the first quarter of 2023, up from a 0.4% increase in Q4 2022.
In a joint press release by the Ministry of Finance (MOF), Ministry of National Development (MND) and Monetary Authority of Singapore (MAS), they noted that while the previous cooling measures in December 2021 and September 2022 have had a “moderating effect”, there were “renewed signs of acceleration amid resilient demand” in the first quarter of 2023.
“Demand from locals purchasing homes for owner-occupation has been especially strong, and there has also been renewed interest from local and foreign investors in our residential property market.
“If left unchecked, prices could run ahead of economic fundamentals, with the risk of a sustained increase in prices relative to incomes.”
Transitional provision for ABSD
Just like the December 2021 round of cooling measures, there will be a transitional provision in which the previous ABSD rate will apply for cases that meet all of the following criteria:
- The sellers granted the Option to Purchase (OTP) on or before 26 April 2023
- This issued OTP is exercised by 17 May 2023, or within the OTP validity period, whichever is earlier
- This OTP has not been changed on or after 27 April 2023
ABSD remission for married couples
Married couples comprising at least one Singaporean spouse may apply for the ABSD remission. This is provided that they jointly purchase a second residential property.
They will also have to sell their first residential property within six months of
- The date of purchase of the second home if it is a completed property (eg. resale), or
- The issue date of the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) of the second home, whichever is earlier, if it is not completed at the time of purchase (eg. new launch condo)
Condos for sale
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Those purchasing an HDB flat or an Executive Condominium from the developer are not subject to the ABSD, provided that at least one of the buyers is a Singaporean.
Properties for sale (that aren't subject to ABSD)
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Understanding the impact of ABSD on property investment decisions
The recent amendments to the Additional Buyer’s Stamp Duty (ABSD) have significant implications for both local and international investors considering the Singapore property market. With the ABSD rates now reaching a substantial 60% for foreign investors, the landscape of property investment in Singapore is poised for a strategic shift.
Potential investors must now navigate these changes with a keen understanding of their long-term investment goals and the evolving regulatory environment. This development underscores the government’s commitment to stabilizing the property market and ensuring affordability for Singaporeans. As investors recalibrate their portfolios, the need for comprehensive market analysis and expert financial advice has never been more critical.
Navigating the new real estate terrain with expert insights
For Singaporeans contemplating their second home purchase or foreigners eyeing the vibrant Singapore real estate market, the increased ABSD rates present a new set of challenges and opportunities. It’s essential to delve into the nuances of these policy changes and their potential impact on property values and investment returns.
By leveraging expert insights and advanced tools like the 99.co stamp duty calculator, prospective buyers can make informed decisions. Whether it’s understanding the transitional provisions for ABSD or exploring properties exempt from these duties, staying informed will be key to successful real estate endeavours in this new regulatory era.
Planning to sell off your property fast? Let us help you get the right price by connecting you with a premier property agent.
If you found this article helpful, 99.co recommends 4-room Pinnacle@Duxton flat, sets new sale record at S$1.4m and S$1,369 psf and 39 condo units sold at a loss in February 2023, the biggest at S$2.68m.
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